2023-09-19 18:12:33
Economy Editorial Room
Partly satisfied, partly surprised, the hoteliers declare, after the announcements by Prime Minister Kyriakos Mitsotakis from the TIF, regarding the arrangements for short-term leases, but also the increase of the Accommodation Fee, which turns into a “Green Fee”.
There are many objections to the latter, as it is a horizontal burden, with the industry seeking to formulate a counter-proposal that will satisfy all sides.
The government’s decision is to increase by one to six euros from 1 January 2024 the tax on daily accommodation in hotels, which is paid in addition to all other charges and attributed to the public coffers. The aim is to double the reserve for natural disasters from 300 to 600 million euros.
Based on what has been known so far, in 1 and 2-star hotels the fee will rise from 0.50 to 1.5 euros, in 3-star hotels from 1.5 to 3 euros, in 4-star hotels from 3 to 7 euros and for the 5 stars it will increase from 4 euros to 10 euros.
The hotel industry was surprised by this development, as there had been no prior information and consultation, and is asking for the redesign of the “Green Fee”, given that the abolition of the accommodation fee, which was imposed in the first memorandum years, has been a constant request for years.
Nevertheless, the industry understands the necessity of finding resources but calls for a rationalization in its application, as the particularities of each region and the discrepancies in the rental prices of the rooms are overlooked. As the president of the Panhellenic Federation of Hoteliers Grigoris Tassios typically mentions in his post, if the method of calculation is not changed, there will be many cases of hotels where the specific fee will reach or even exceed 10% of the room rental price. He cites, in fact, an example, that the customer of a 5* hotel in the region, with a room rental price of 109 euros, will be charged a Green Fee of 10 euros, while correspondingly a villa, which is rented short-term with a rent of 1,800 euros, will be charged a Green Fee of 1 ,5 euro.
For this reason, the sector proposes a specific measure to be designed from the beginning, in order to bring about the expected results in the effort to deal with the climate crisis, without the risk of reducing the competitiveness of our country as a tourist destination, a risk that exists given the high direct and indirect taxation in the country, unlike other tourist markets.
In fact, there are also proposals so that in the future the revenues from this fee will be given to the municipalities, so that they are remunerative to the local communities and contribute to the improvement of the tourist infrastructure, as stated by the president of the Ioannina Prefecture Hoteliers Union, Spyros Sourelis. At the same time, of course, he also raised the issue of rationalizing the increase, given that agreements have already been signed with tourist agencies for 2024.
Step for healthy competition
Satisfaction, on the other hand, exists for the imposition of the fee on short-term rental as well, with the government staff having taken an important step to control the unfair competition caused to the detriment of hotels and accommodation.
As announced, the residence fee will also be imposed on short-term leases managed by either natural or legal persons, as long as they concern three or more properties. Those who own or manage more than three properties will have to proceed with opening books and will operate as legal entities or freelancers, while the regime is expected to be tightened for those with services beyond bed linen. Also, an important differentiation that was announced, provides that in case of use of the entire apartment building for short-term rental, then it will be considered that it is a tourist accommodation.
The hotel industry has welcomed the attempt to regulate short-term rentals as a first important step towards a healthy competition framework in the market, but notes that this step should continue and concern on the one hand all properties rented out for short-term rentals, on the other hand on individual issues, which burden the hotels financially, but not the short-term rental.
“We believe that, when everyone participates on equal terms in the game, those who should remain in the market”, Mr. Surelis concluded.
#Partly #satisfied #partly #surprised